Healthcare Analytics Market

Global Healthcare Analytics Market Size (2023 to 2028)

The global healthcare analytics market size is expected to reach USD 34.74 billion by 2028 from USD 11.2 billion in 2023, growing at a CAGR of 25.41% during the forecast period.

Global Healthcare Analytics Market Share Insights:

• Based on type, the descriptive analysis segment had 36.07% of the global healthcare analytics market share in 2022.
• Based on application, the financial analytics segment held 37% of the worldwide market share in 2022.
• The North American market was the largest regional segment globally in 2022.
• The APAC region occupied a considerable share of the worldwide market in 2022 and is predicted to grow at the fastest CAGR during the forecast period.

Healthcare Analytics measures improved healthcare delivery, patient outcomes, and clinical performance by analyzing large data sets. The patterns, relationships, and insights generated from healthcare analytics help healthcare providers make effective decisions that can provide quality patient care. For instance, by using the data from electronic health records (EHR), healthcare providers can predict the possibility of readmission of patients and take steps towards preventing it. In addition, the insights from healthcare analytics can help reduce healthcare costs significantly. Healthcare analytics is also helpful in identifying the patterns and trends in the population's health and provides essential real-time data for healthcare providers that can assist in improved clinical decision-making.

MARKET DRIVERS:

The rapid adoption of the latest technologies in the healthcare industry and the implementation of new healthcare devices are propelling the global healthcare analytics market growth.

Increasing venture capital investments and healthcare spending, growing R&D activities, improving patient comes, and introducing big data in healthcare influence the growth of the global healthcare analytics market. Furthermore, the investment expenditure on healthcare, particularly in urban areas with increasing disposable income, boosts the market growth. In addition, adopting analytics for sales and marketing applications, increasing the widespread chronic diseases, and growing pressure to minimize healthcare expenditure are expected to promote the growth rate of the healthcare analytics market during the forecast period. However, adopting big data applications in healthcare and ensuring standardization in numerous internal processes while accommodating regulatory needs further accelerates the growth of the healthcare analytics market. Furthermore, increasing demand to reduce healthcare costs, including medical product defects and damages associated with inefficient hospital workflows, is expected to grow big data in the healthcare sector. As a result, the digitization of healthcare data is also one of the notable drivers of the global healthcare analytics market.

The tremendous growth of patient data in the global healthcare system provides a strong foundation for healthcare analytics needs. The need to improve healthcare decisions with insights backed by global data drives healthcare analytics adoption. However, the global healthcare analytics market is deteriorating with the increasing use of analytical tools to reduce the performance gap in healthcare delivery systems. The tremendous potential of the healthcare analytics process and strategy can help stakeholders better assess public health priorities and make credible, data-driven healthcare decisions to fuel market growth. In addition, insights from healthcare analytics can help improve relationships between caregivers and healthcare providers, including insurance providers. Therefore, adopting healthcare analytics tools and strategies is a valuable claim. Good potential healthcare analytics for national preventive health strategies and plans drives their adoption in developed countries. The digitization of healthcare systems, especially in growing regions, is fuelling the market demand for healthcare analytics. The growing popularity of big data analytics in healthcare transformation in developing and developed countries have contributed significantly to the growth of the healthcare analytics market.

MARKET RESTRAINTS:

Data privacy and security concerns are majorly hampering the global healthcare analytics market growth. The scarcity of skilled professionals with data analytical skills in some countries and the high costs associated with the technologies of healthcare analytics are further hindering market growth. Regulatory challenges for the new technologies of healthcare analytics to enter the market, interoperability issues, and resistance to change to healthcare analytics by healthcare organizations are impeding the growth of the healthcare analytics market. In some countries, the lack of infrastructure supporting healthcare analytics is diluting the overall market's growth rate. Data quality and standardization issues will negatively impact the healthcare analytics market growth during the forecast period.

Impact of COVID-19 on the global healthcare analytics market:

COVID-19 was declared a pandemic by the world healthcare organization in March 2020. It has affected all sectors across the globe. The healthcare industry is benefited from the pandemic. The healthcare analytics market faced a downfall in the earlier stage of COVID-19 because of the lockdown and travel ban.  The healthcare industry shares mass health-related information using various platforms. It is essential to store patients' information during the pandemic to analyze patient conditions and promote better treatment procedures. Thus, the pandemic has positively impacted the demand for this market. Hence, the market is expected to have better further growth.

REPORT COVERAGE:

This research report on the global healthcare analytics market has been segmented and sub-segmented into the following categories.

Healthcare Analytics Market - By Type:

• Predictive Analytics
• Descriptive/Retrospective Analytics
• Prescriptive Analytics

Based on type, the healthcare predictive analytics segment held the major share of the global healthcare analytics market in 2022 and is expected to pose a healthy CAGR during the forecast period. The growing usage of Artificial Intelligence (AI) and big data analytics in the healthcare industry propels segmental growth. Furthermore, the benefits associated with predictive analytics for the healthcare organizations, such as identifying potential health risks, predicting patient outcomes, and optimizing resource utilization, further fuel the segment’s growth rate. In addition, the growing adoption of personalized medicine, increasing healthcare expenditure, growing disposable income, and increasing need to reduce costs for healthcare organizations are favoring the segment's growth.

The prescriptive analytics segment is predicted to showcase a promising CAGR during the forecast period. Healthcare organizations can optimize clinical outcomes and resource utilization by leveraging prescriptive analytics. Factors such as increasing demand for quality healthcare and the rising need for patient outcomes primarily contribute to the segment's growth. In addition, the rising emphasis on population health management and the increasing demand for real-time data analytics are further promoting segmental growth.

The descriptive/retrospective analytics segment is estimated to hold a considerable share of the worldwide market during the forecast period. By using the insights from descriptive analytics, healthcare organizations can understand patient behavior, identify trends, and evaluate the effectiveness of treatment strategies. Data integration and interoperability among healthcare organizations drive the segment's growth.

Healthcare Analytics Market - By Application:

• Financial Analytics
• Clinical Analytics
• Operational & Administrative Analytics

Based on application, the clinical analytics segment captured the leading share of the global healthcare analytics market in 2022 and the segment’s dominance is expected to continue during the forecast period. Increasing emphasis on population health management, quality healthcare, and growing demand for precision medicine propel segmental growth. In addition, factors such as the benefits associated with clinical analytics, such as improved clinical decision-making, optimized patient outcomes, and reduced healthcare costs, further fuel the segment's growth rate. Furthermore, the growing adoption of electronic health records (EHR) and the increasing need to integrate healthcare data are estimated to boost the segment's growth rate during the forecast period.

The financial analytics segment is estimated to showcase a noteworthy CAGR during the forecast period. The growing emphasis on healthcare cost containment and the need to improve operational efficiency for healthcare organizations contribute to the segment's growth. In addition, the growing need for value-based reimbursement models and accurate financial reporting is fuelling the segment’s growth rate.

Healthcare Analytics Market - By End User:

• Public Health Systems
• Healthcare Providers
• Private Healthcare Providers
• Monitoring Agencies
• Health Insurance Companies
• Clinical and Medical Research Bodies
• Technology Vendors

Based on end-user, the public health systems segment held the largest global healthcare analytics market share in 2022. The growing number of initiatives by various governments in favor of public healthcare systems, increasing emphasis on population health management, and rising focus on resource optimization are propelling the segment's growth. In addition, the growing prevalence of quality diagnosis and treatment procedures at any cost, especially in urban areas, is fuelling segmental growth.

The healthcare providers segment is predicted to occupy a considerable global market share during the forecast period. The growing need to improve patient outcomes, reduce costs, and enhance operational efficiency drives the segment's growth.

Healthcare Analytics Market - By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• The Middle East and Africa

Regionally, the North American healthcare analytics market accounted for the largest share of the worldwide market in 2022. The region’s domination is likely to continue during the forecast period owing to the rapid adoption of the latest technologies and increasing usage of healthcare analytics in various healthcare sector applications. The availability of sophisticated healthcare infrastructure in North America is another major factor propelling regional market growth. Healthcare organizations in North American countries are keen to adopt healthcare technologies to optimize resources and improve patient safety. Furthermore, the growing demand for better techniques that are convenient and accurate in completing tasks is boosting the healthcare analytics market in North America. 

The Europe healthcare analytics market accounted for the second-largest share of the worldwide market in 2022 and is predicted to grow at a notable CAGR during the forecast period. Factors such as the growing capital income in both developed and developing countries and increasing government initiatives to accept electronic health records in hospitals promote the European market growth. In recent years, the European Union has launched numerous initiatives to promote healthcare analytics adoption. As a result, the growing demand for advanced healthcare technologies across the European region is propelling the regional market growth. Furthermore, the growing aging population, increasing chronic disease patient population, and rising demand for precision medicine are promoting the growth of the European healthcare analytics market.

The Asia Pacific healthcare analytics market had a tremendous growth rate over the past decade and is anticipated to witness the highest CAGR during the forecast period owing to the growing population. In addition, factors such as increasing healthcare expenditure, the growing number of improvements in the healthcare infrastructure of APAC counties, and the rising prevalence of chronic diseases are contributing to the healthcare analytics market growth in APAC. In addition, increasing disposable income in urban areas is fuelling the growth rate of the APAC healthcare analytics market.

The Latin American healthcare analytics market held a considerable share of the worldwide market in 2022 and is predicted to showcase a steady CAGR during the forecast period.

The  MEA healthcare analytics market is estimated to capture a moderate share of the global market during the forecast period.

KEY MARKET PARTICIPANTS:

A list of notable companies playing a promising role in the Global Healthcare Analytics Market is SAS Institute Inc., McKesson, Optum Inc., IBM Corporation, Truven Health Analytics Inc., Cerner Corporation, Verisk Analytics Inc., Allscripts Health Solutions, Oracle Corporation, MedeAnalytics Inovalon Inc., and Health Catalyst.

RECENT MARKET DEVELOPMENTS:

• On the other hand, emerging markets are expected to grow due to a surge in government spending on healthcare infrastructure. In addition, integrating big data and electronic health records to collect patient health data will merge the industry due to the transition from paper charts to real-time monitoring systems.
• IBM acquired Truven Health Analytics for approximately $ 2.6 billion to enhance IBM Watson Health's business portfolio and expand its customer base.
• Medtronic plc and its strategic technology partner, IBM Watson Health, 2018, announced the commercial application of Sugar.IQ Intelligent Diabetes Assistant
• In April, Inovalon launched two new products on the Inovalon ONE (TM) platform. Clinical data extraction as a service (CDEaaS) and natural language processing as a service (NLPaaS).
• In 2017, VitreosHealth unveiled a powerful digital membership engagement solution powered by AI. This digital engagement service extends care management's reach to more patients at the right time.
• McKesson Specialty Health and CoverMyMeds (a division of McKesson Corporation) launched ExpressCoverage in 2018. It is an integrated eServices platform designed to improve patient care processes.